Detroit must be more business friendly

Fiscal Policy Director Michael LaFaive is cited in today’s Detroit News editorial about the need for the city of Detroit to make it easier to open a small business.

“Lots of small businesses have the potential to be the next big thing, but government has to get out of their way,” LaFaive said, noting that city hall should not treat business owners as suspect.

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LaFaive also said Detroit should abolish its personal income tax.

“Cities without an income tax grow faster than those with one,” he said.

The Detroit News also referenced the story of Barry Gordy, who founded Motown Records in a private home and said Detroit’s zoning restrictions on home-based businesses today would make it impossible for Gordy to have such success today. The Center has written about that example here, here and here.

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